Increase Your Income Tax Refunds!

Everyone wants to get more money back at tax time.  Fortunately, there are legitimate ways of doing this that not everyone has knowledge about.  Take advantage of all the deductions and itemizations available to you and you may be able to substantially increase your income tax refund.

·Don’t forget to include your mortgage interest in your “itemized deductions.”  This represents a sizable refund to many homeowners.

·Just like mortgage interest, always include interest on a Home Equity Line Of Credit (HELOC) in your “itemized deductions.”

·The Child Credit is not to be overlooked by parents wishing to get more from their income tax refund.

·Deduct your property taxes under “itemized deductions” if you are a homeowner.

·You can deduct the License Fee charged you by your state Department of Motor Vehicles.

·There is a value to things you give away to charities for Thrift Shops.  Many of these places will offer you a receipt for items you give away.  Assign an honest value to these items, as they are tax deductible under “Gifts to charities” in Schedule A of your 1040 income tax form.  You might want to take a picture of the items and save it along with your receipt, in case you are audited.

·Income tax software programs like “Turbo Tax” and “Tax Cut” not only do the entire math for you, but they catch credits, tax breaks, and deductions you may have otherwise overlooked.  They can pay for themselves over time and they are much less expensive than an accountant.

·Beware of tax anticipation loans.  These are very costly and leave your refunds in the hands of the tax preparation service.  Not only will they charge you substantially for preparing your taxes, but also they will charge exorbitant fees and interest on the loan they offer until your rebate comes to you.  Once you sign on, the Internal Revenue service releases the money to them and they take all of their deductions directly from your rebate.

·You’ve heard more and more in recent years about the Earned Income Tax Credit.  Basically, if you earn under a certain amount, you may qualify for a bigger rebate based upon the Earned Income Tax Credit.  Find out if you are eligible.

Everyone wants to get as big a tax rebate as they can.  To get yours, make sure that you take advantage of all the deductions and tax credits legitimately available to you.